Stora Enso signs joint-venture agreement with Foshan Huaxin Packaging
Helsinki 10/27/2005 10:00 PM GMT (TransWorldNews)
As anticipated in the previous announcement, Stora Enso and Chinese board producer Foshan Huaxin Packaging Co., Ltd. have signed today an agreement regarding the establishment of a joint venture in liquid packaging boards. The agreement is subject to final approval by Stora Enso's Board of Directors. The joint-venture plan will be filed for approval by the Chinese authorities. Stora Enso will have an 80% majority shareholding in the joint venture.
A letter of intent to start a joint venture with Foshan Huaxin Packaging Co., Ltd. was signed in August 2005. The final decisions on the project are expected to be taken by the end of 2005 after all authority approvals have been obtained. The new joint-venture company will be called Stora Enso Huaxin (Zhuhai) Packaging Boards Co., Ltd.
Foshan Huaxin Packaging Co., Ltd. has begun building a white lined chipboard machine with an annual production capacity of 250 000 tonnes. Through the joint venture company, Stora Enso plans to change the scope of the investment by modifying the machine to manufacture primary-fibre-based products such as liquid packaging boards, cupstock, cigarette boards and other cartonboards, thereby becoming the first producer of liquid packaging board for aseptic end uses in China.
For further information, please contact:
Kai Korhonen, Senior Executive Vice President, Stora Enso Packaging Boards,
tel. +358 2046 21496
Niilo Pöyhönen, Executive Vice President, Stora Enso Consumer Boards, tel. +358 2046 22160
Markku Pentikäinen, Executive Vice President, Stora Enso Asia Pacific, tel. + 86 13 76 43 00 175
Kari Vainio, Executive Vice President, Corporate Communications, tel. +44 7799 348 197
Keith B Russell, Senior Vice President, Investor Relations, tel. +44 20 7016 3146
Previous press release concerning Stora Enso's liquid packaging board project in China available at www.storaenso.com/press
- 11 August 2005: Stora Enso to start liquid packaging board production in
joint venture in China